What are Niche Markets and What is Niche Marketing

Niche marketing is that branch of marketing where a service or a product line is targeted. It also refers to finding a segment of the general market for a particular service or product line.

Mumbai, India (prHWY.com) September 1, 2012 - Niche marketing is that branch of marketing where a service or a product line is targeted. It also refers to finding a segment of the general market for a particular service or product line. Once the segment is decided then comes identifying the needs of that segment. A clear list of needs helps to develop a solution for the needs of that segment and then markets to it to get the word out. Niche marketing is tailoring a product to a particular type of customer. This however limits the sales potential but makes the product more attractive to those in the target group.

Some examples of a Niche Market can be - Soft Top luxury vehicles, Energy drinks branded by top fashion houses, exotic holiday destinations etc.

The key characteristics of Niche Markets are:

* Low Sales Potential
* High cost of per unit production
* High Prices (as cost of production is high)
* Targeted Customer
* Product Differentiator

For the Niche Marketing to be a successful strategy the niche market should be large enough to be profitable. The market should have enough growth potential for the product and service to sustain. Though there is a high degree of Customer Loyalty in this segment however, the needs of the customers should be understood correctly otherwise the product or service will get outright reject.

For more information on Niche Marketing | Casestudy.co.in

###

Tag Words: customer loyalty, niche marketing, case study, marketing

Categories: Business

Link To This Press Release:

URL HTML Code